GME Stock Alert: GameStop Will Remove Crypto Wallets Feature

Source: Shutterstock / mundissima

Shares of GameStop (NYSE:GME) opened in the red after the video game retailer announced that it would shut down support for its cryptocurrency wallets due to “regulatory uncertainty.” On Nov. 1, customer access to the company’s iPhone app and Chrome extension-based crypto wallets will be removed. As of now, access to GameStop’s non-fungible token (NFT) marketplace seems to be unaffected by the wallet news.

The end of the company’s crypto wallet was spurred by increased regulatory scrutiny. Securities and Exchange Commission (SEC) Chair Gary Gensler has sought to clamp down on cryptocurrencies this year, making it clear that he believes that most tokens should be classified as securities. Ripple Lab’s XRP (XRP-USD), which was recently involved in a controversial court case, received a ruling that about half of its sales of XRP did not constitute an illegal securities offering, while the other half did.

GME Stock: GameStop to Remove Crypto Wallet

Meanwhile, drama has surrounded GameStop’s executives over the past few weeks. In July, CFO Diana Saadeh-Jajeh announced her resignation, effective Aug. 11. Saadeh-Jajeh filled the role of CFO in July of 2022, which means that her tenure at the company lasted for about a year. Daniel Moore will temporarily replace her role as the interim principal financial and accounting officer. Earlier in June, Matt Furlong relinquished his role as CEO, while Ryan Cohen stepped up to the plate as Executive Chairman.

Cohen hasn’t been insulated from drama, either. Last month, a U.S. judge ruled that he could be liable for litigation due to a single emoji included in a tweet. The tweet, which was in response to a CNBC story that forecasted that Bed Bath & Beyond (OTCMKTS:BBBYQ) could drop below $1, read “at least her cart is full,” followed by a smiling moon emoji. The judge noted that investors may have interpreted the emoji as meaning that the stock would rise.

“Moon emojis are associated with the phrase ‘to the moon,’ which investors use to indicate ‘that a stock will rise,’” wrote Judge Trevor McFadden. “So meme stock investors conceivably understood Cohen’s tweet to mean that Cohen was confident in Bed Bath and that he was encouraging them to act.”

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. 

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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